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A case of Too Much Money

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xmrdfghap

Senior Member
Joined
Jan 15, 2002
Professional Status
General Public
State
Florida
Goodpasture

As usual you have missed the point. Do you any any empirical data to back up your opinion?

As usual? As usual, your are being argumentative without any real reason to be. do you have empirical data that says I am wrong?
 

Jim McGrath

Junior Member
Joined
Jan 25, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Dee Dee,
I agree with you, our market in southwest florida is the same. When prices climb to a economic ceiling, these folks sell and move to areas more in line with their income. Thats when shortages of service personnel surface. Is there a bubble? I think thats just the new buzz word this year for a demographic shift.
With your insight and observation skills, you could work this market.

Mike, I disagree with you and Dee Dee on this point. I am here in SW Florida and for the last ten years I see properties being sold for way over the market, many times by European buyers who offer well above the market. While this may drive up the market for a while, it is like ballon. The more you pump into it the bigger it gets, till it gets more air, or pressure than it is built for, then it bursts like the proverbial bubble. I see too many million and multi-million dollar properties over extended.

It will not take a depression to burst this bubble, a recession can easily trigger it.

The buzz word for next year may well be, REO.

Jim
 

aprazer

Junior Member
Joined
Feb 27, 2002
Professional Status
Certified Residential Appraiser
State
New York
This is one of the better "too much money" stories I have heard in awhile. Plumber is working on my house and asks what I do for a living. We start discussing the unbelievable things we have both seen. He tells me he went to a home to install a pool heater for a new pool. Wife comes out of house and gives him the "what do you think your doing?"
"Putting in the pool heater"he replies-"not there your not, I don't want to see it. But there is no other place to put it. She demands he installs it against the property line at the rear of yard. No can do, there are setback requirements. They continue to discuss this until she says what exactly is preventing you from doing what I want? He explains you simply cannot put the heater on top of the property line. She tells him to go take his lunch break and come back in an hour. When he returns, he learns that she went to house that backs to her property and BOUGHT IT. For $400,000.

About 6 months later he returned for some other work-wife no longer has a husband. Think that little episode had anything to do with the divorce?
 
Joined
Jan 16, 2002
Back to the original point - while I like the concept of adjusting in the grid for BHTMM, there is no such thing as TMM. I'm seeing more and more HUGE downpayments on over-priced homes, apparently buyers don't care and/or have no concept of MV. Appraisals are coming in way short of contract prices and in most cases no pressure or call backs to raise value. In this area there is so much loose cash they have to bury it someplace.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
What you are seeing is an extreme version of "gentryfication". Uptown Dallas was an area of working-class people, homes less than $100k, built between 1900 and 1940. However, over the last several years, these have shot up as people purchased the homes, moved in and updated these homes. Now the lots are selling for over $400K in some areas, with the bungalows selling for $500-600K. So far, as long as there are jobs to pay for these homes and people willing to pay the $$$, I don't see the "bubble" bursting.
 

Jim McGrath

Junior Member
Joined
Jan 25, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Back to the original point - while I like the concept of adjusting in the grid for BHTMM, there is no such thing as TMM. I'm seeing more and more HUGE downpayments on over-priced homes, apparently buyers don't care and/or have no concept of MV. Appraisals are coming in way short of contract prices and in most cases no pressure or call backs to raise value. In this area there is so much loose cash they have to bury it someplace.

Joe, most of the million+ dollar condos I do on the Gulf of Mexico down here in Florida are cash sales. Many of the multi million dollar homes are too.

I was doing one million dollar condo development down in Sarasota a few weeks ago, and the security guard that escorts you around, told me when the developer was finishing selling the project, he had about a dozen units left, so he came down to the pool and asked the residents if they wanted to buy any of them. One Columbian bought seven of them. I guess he wanted one for each day of the week. Many of these units are owned by snowbirds who only come to Florida for a month or two each year. Isn't life great in the sunshine state???

Jim
 
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